To password protect QuickBooks, what is the first action you must perform?

• A. Assign an administrator
• B. Create a new company file
• C. Enable multi-factor authentication
• D. Turn off user access

Answer: (A)

The key idea is that access control in QuickBooks starts with designating who can manage security settings. Assigning an administrator is the first step because the administrator has the authority to set up user accounts, create passwords, and assign what each user can see or do in the company file. Without an administrator, you can’t establish or enforce password protection for the QuickBooks data.

Creating a new company file isn’t necessary to enable password protection—you can protect an existing file by setting up user accounts and passwords through the administrator. Multi-factor authentication is an additional security layer that may be offered in some versions, but it isn’t the initial requirement to password protect. Turning off user access would lock people out, but it isn’t how you implement standard password protection.